18 July 2018, 15:39

The monitoring and evaluation results for the 2017 implementation of the Strategic Roadmap for Heavy Industry and Machinery Development in the Republic of Azerbaijan have been published. Faiq Gasimli, macroeconomist at the Center for Analysis of Economic Reforms and Communication (CAERC), stated that the implementation level demonstrates the continued success of the industrialization policy under the leadership of President Ilham Aliyev: “The 8.8% growth of the non-oil industry in the first half of this year is tangible proof of this progress.”

According to Faiq Gasimli, the overall implementation rate of the roadmap reached 68%, with 44% of the 2017 planned measures fully completed, 47% partially completed, and 9% not implemented.

He added that the first goal of the roadmap — Optimization of Existing Assets — achieved 52% full implementation and 48% partial implementation. Measures for increasing productivity and efficiency, optimizing energy use, and creating a central register of assets and existing potential were carried out in 2017. Methodologies such as “Lean Production Methods,” “Tools for Lean Production Systems,” “Model Enterprise Creation Using Lean Methods,” and “Model Enterprise Methodology for SMEs in Azerbaijan” were developed. Three pilot enterprises were selected in metallurgy, machinery, and automotive manufacturing. Studies were conducted on international practices for energy forecasting and planning, and regional electricity usage patterns were analyzed to produce statistical reports. A central registry of unused industrial assets and natural resources was compiled.

The second goal — Creating a Competitive Sector — had 36% fully implemented, 44% partially implemented, and 20% not implemented. Analyses were conducted to identify products with high domestic production potential and regional import demand, and markets in regional countries were studied. Research was conducted to identify competitive products, import-substitutable goods, and services offered by local mining sector enterprises.

The third goal — Providing Financial Support and Implementing International Cooperation — reached 45% full implementation, 50% partial, and 5% unimplemented. Activities included the creation of an Investment Data Bank, improving Azerbaijan’s ranking in international reports like Doing Business, aligning the national standardization system with international requirements, and researching corporate governance standards. Draft regulations and management system frameworks were prepared to enhance industrial enterprise efficiency. Conceptual proposals for a Brand Index and the first “Marketing Summit” promoting the Made in Azerbaijan brand and national brand creation were carried out.

In 2017, CAERC and the Tariff Council achieved 83% and 81% of their planned measures, respectively. The State Committee on Standardization, Metrology and Patents and the Ministry of Energy reached 75%, the Ministries of Economy and Education 67% and 63%, and the State Committee on Property Issues, Ministry of Defense Industry, and Azerbaijan National Academy of Sciences 50% implementation.


Center for Analysis of Economic Reforms and Communication
www.ereforms.gov.az